ORIX JREIT Inc. (8954) AI Stock Analysis

• Market Cap: ¥580.70B
• Dividend Yield: 4.1%
• Average Volume (3M): 11.36K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.20
• Revenue Growth: -31.88%
• EPS Growth: 2.02%
• Country: JP
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 2264.00
• Shares Outstanding: 5,520,000
• 10 Day Avg. Volume: 7,940
• 30 Day Avg. Volume: 11,355
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥117,857 ▲(11.40% Upside)

The overall stock score of 70.5 reflects strong financial performance and positive technical indicators. The company's stable profitability and efficient operations are significant strengths, although recent revenue declines and cash flow variability are concerns. The stock's valuation suggests it may be slightly overvalued, but the attractive dividend yield provides a compensating factor.

Positive Factors

Stable Profitability

Consistent profitability indicates strong operational efficiency and the ability to maintain margins, which is crucial for long-term financial health.

Solid Balance Sheet

A strong balance sheet with manageable leverage ensures financial stability and flexibility, supporting sustainable growth and investment opportunities.

Strong Operating Cash Flow

Robust operating cash flow supports ongoing operations and investments, providing a buffer against revenue fluctuations and ensuring liquidity.

Negative Factors

Revenue Decline

Declining revenue can impact growth prospects and profitability, necessitating strategic adjustments to stabilize and enhance income streams.

Free Cash Flow Variability

Variability in free cash flow can limit the company's ability to fund new projects or return capital to shareholders, affecting long-term financial planning.

Revenue Growth Challenges

Challenges in revenue growth can hinder the company's ability to expand and compete, requiring strategic initiatives to drive future performance.

ORIX JREIT Inc. Business Overview & Revenue Model

Company Description

ORIX JREIT Inc. (8954) is a Japan-based real estate investment trust (REIT) that primarily invests in income-generating properties across various sectors, including residential, office, retail, and logistics. The company is focused on acquiring and managing real estate assets that provide stable rental income, while also striving to enhance the value of its portfolio through strategic management and development initiatives. ORIX JREIT aims to deliver sustainable returns to its unitholders by leveraging its expertise in real estate management and capitalizing on market opportunities.

How the Company Makes Money

ORIX JREIT generates revenue primarily through rental income from its diverse portfolio of properties. The company leases its properties to tenants, which provides a stable cash flow stream. Additionally, ORIX JREIT may benefit from capital appreciation of its real estate assets over time, which can enhance its overall value and returns to investors. The company also engages in strategic partnerships and collaborations within the real estate sector, which can lead to increased investment opportunities and operational efficiencies. Factors such as market demand for commercial and residential spaces, occupancy rates, and lease agreements play a critical role in influencing its earnings.

ORIX JREIT Inc. Financial Statement Overview

Summary

ORIX JREIT Inc. demonstrates strong profitability and efficient operations, with stable margins and a solid balance sheet. However, recent revenue declines and variability in free cash flow growth pose potential risks. Overall, the company maintains a robust financial position with areas for improvement in revenue generation and cash flow stability.

Income Statement

The income statement shows a stable gross profit margin and net profit margin over the years, indicating consistent profitability. However, the recent revenue decline of 6.04% suggests potential challenges in revenue generation. EBIT and EBITDA margins remain strong, reflecting efficient operations.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio and a stable equity ratio. Return on equity is consistent, indicating effective use of equity to generate profits. The company's leverage is within acceptable limits for the industry.

Cash Flow

The cash flow statement indicates a significant decline in free cash flow growth, which could be a concern. However, the operating cash flow remains strong, covering net income adequately. The free cash flow to net income ratio has fluctuated, suggesting variability in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.01B	51.69B	55.01B	51.37B	49.86B	47.22B
Gross Profit	28.71B	25.42B	28.71B	24.83B	27.03B	25.55B
EBITDA	33.03B	32.14B	32.57B	32.82B	31.07B	29.63B
Net Income	22.52B	22.52B	23.05B	19.05B	21.13B	19.46B
Balance Sheet
Total Assets	685.77B	685.77B	685.00B	677.84B	682.98B	684.45B
Cash, Cash Equivalents and Short-Term Investments	21.15B	26.80B	21.15B	42.07B	50.41B	48.97B
Total Debt	296.20B	296.20B	297.09B	292.09B	294.54B	297.64B
Total Liabilities	335.47B	335.48B	335.18B	329.96B	332.30B	335.54B
Stockholders Equity	350.30B	350.30B	349.82B	347.87B	350.68B	348.91B
Cash Flow
Free Cash Flow	-1.19B	38.90B	-4.18B	17.63B	23.80B	16.17B
Operating Cash Flow	38.90B	38.90B	58.80B	36.61B	36.17B	27.19B
Investing Cash Flow	-38.96B	-38.96B	-59.78B	-19.59B	-12.33B	-10.80B
Financing Cash Flow	-17.24B	-17.24B	-16.14B	-24.30B	-22.45B	-13.70B

ORIX JREIT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8954, the sentiment is Positive. The current price of 105800 is above the 20-day moving average (MA) of 105110.00, above the 50-day MA of 104550.00, and above the 200-day MA of 95312.55, indicating a bullish trend. The MACD of 181.82 indicates Negative momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 80.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8954.

ORIX JREIT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8975	75 Outperform	¥147.80B	15.98	―	6.27%	55.69%	24.75%
8954	71 Outperform	¥580.70B	24.84	―	4.10%	-31.88%	2.02%
8987	67 Neutral	¥198.77B	24.25	―	3.82%	64.38%	0.79%
8952	66 Neutral	¥917.75B	25.14	6.59%	3.83%	-1.97%	-2.16%
8958	66 Neutral	¥136.63B	16.27	―	5.91%	90.94%	40.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8976	64 Neutral	¥348.19B	25.24	―	3.98%	19.18%	-23.37%

ORIX JREIT Inc. Corporate Events

ORIX JREIT Sets Interest Rates for New Debt Financing

ORIX JREIT Inc. announced the applicable interest rates for its recent debt financing, which involves loans from multiple banks with fixed interest rates ranging from 1.389% to 1.718%. This financial move is part of the company’s strategy to secure funding for its operations, potentially impacting its financial stability and stakeholder returns.

ORIX JREIT Secures New Debt Financing for Strategic Acquisition

ORIX JREIT Inc. announced a new debt financing plan totaling 5.5 billion yen, which will be used to acquire the PRIME SHINYOKOHAMA BUILDING. This move is expected to slightly increase the company’s long-term loans and interest-bearing liabilities, impacting its loan-to-value ratio, which will rise from 47.0% to 47.4%. The acquisition aligns with ORIX JREIT’s strategy to enhance its asset portfolio, potentially benefiting stakeholders by increasing asset value and income generation.

ORIX JREIT Updates Debt Financing Repayment Dates

ORIX JREIT Inc. announced a correction to its previous press release regarding new debt financing. The correction involves the repayment date for loans from MUFG Bank, Ltd. and Sumitomo Mitsui Trust Bank, Ltd., which has been updated to October 20, 2026, from the previously stated December 20, 2025. This adjustment may impact the company’s financial planning and stakeholder expectations regarding debt management.

ORIX JREIT Secures New Debt Financing for Property Acquisition

ORIX JREIT Inc. has announced a new debt financing arrangement totaling 15 billion yen, facilitated through MUFG Bank and Sumitomo Mitsui Trust Bank. The funds will be used to finance the acquisition of the Holiday Inn Express Osaka City Centre – Midosuji, reflecting the company’s ongoing strategy to expand its property portfolio. This move increases the company’s short-term loans and raises its loan-to-value ratio slightly, indicating a strategic leverage to enhance asset acquisition.

ORIX JREIT Inc. Announces Strategic Amendments and Director Elections

ORIX JREIT Inc. announced amendments to its Articles of Incorporation and the election of directors, aiming to improve profitability and align management fees with unitholders’ interests. These changes, including setting an upper limit on the number of officers and revising asset management fee criteria, are expected to enhance operational efficiency and stakeholder alignment.

ORIX JREIT Inc. Expands Portfolio with Strategic Property Acquisitions

ORIX JREIT Inc. announced the acquisition of two properties, the Holiday Inn Express Osaka City Centre – Midosuji and the PRIME SHINYOKOHAMA BUILDING, as part of its strategy to improve portfolio quality and achieve stable growth in unitholder value. These acquisitions are expected to capture robust demand due to their strategic locations and potential for future development, thereby enhancing the company’s market position and offering potential benefits to stakeholders.

ORIX JREIT Secures 5 Billion Yen in New Debt Financing

ORIX JREIT Inc. has announced a new debt financing arrangement totaling 5 billion yen with MUFG Bank and Sumitomo Mitsui Trust Bank. This financing will be used for future asset acquisitions, increasing the company’s short-term loans and slightly raising its loan-to-value ratio, which may impact its financial strategy and stakeholder interests.

ORIX JREIT Inc. Secures New Debt Financing with Sustainability Focus

ORIX JREIT Inc. has announced a new debt financing initiative totaling 13,350 million yen, involving multiple lenders with both fixed and floating interest rates. This financing includes sustainability-linked loans, which aim to support environmentally and socially sustainable business activities, with interest rates adjusted based on the achievement of specific sustainability performance targets. The proceeds will be used to refinance existing long-term loans, maintaining the company’s interest-bearing liabilities and loan-to-value ratio unchanged.